West German Prosperity

Report Outline
Federal Republic's Economic Strength
Miracle of Postwar Economic Recovery
A Look Ahead at the German Economy
Special Focus

Federal Republic's Economic Strength

Political Significance of West Germany's Boom

The federal republic of Germany has been catapulted by its economic prowess into the status of a first-class power. This pre-eminence was reflected in the emergence of the German mark, from a series of international monetary crises in 1967–68, as the world's strongest currency. In the past year, the Federal Republic has become the leading financial and industrial nation of Western Europe, with the largest gold hoard, the soundest economy, and the best-disciplined, most industrious work force.

West Germany is the second largest trading nation in the world, behind only the United States; and it is third, after the United States and the Soviet Union, in industrial production. Domestically, the country's economy has achieved a goal hitherto unattained in an open society—full employment without inflation. That accomplishment in itself has been called a miracle, paralleling the miracle of Germany's recovery from the devastating human and material losses of World War II.

The fact that West Germany with its 60 million people seems to have regained the rank of a world power raises momentous political questions, such as whether the North Atlantic Treaty Organization can continue indefinitely to base its strategy for the defense of Western Europe on maintenance of American, British, and French troops and weapons on German soil; what direction West Germany's policy may take on reunion with what it calls “the other part of Germany”; and what adjustments may be expected in international councils in consequence of shifting power relationships resulting from the growth of West German influence and from the shaky economic position of some other leading Western powers. Dramatic changes in the immediate future are hardly likely. In the longer run, however, Germany's economic vigor, barring unforeseen setbacks, will undoubtedly be translated into stronger leadership on the international scene.